Is an Eos Worldwide franchisee allowed to solicit Eos Worldwide's clients to terminate their engagement with Eos Worldwide?
Eos_Worldwide Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) Solicit, divert, or induce, directly or indirectly, any of our or our affiliates' clients, referral sources, brokers, insurers, suppliers, or any other parties with whom we (or our affiliates) do business or whom you know we (or any of our affiliates) have contacted or solicited for business relationships, to terminate any such engagement with us or our affiliates, or otherwise attempt to interfere with any such business relationships or potential business relationships, as the case may be;
provided, that, you may continue to engage with Clients for other services not related to EOS and that do not make use of our Marks, Copyrights, or other Intellectual Property or information, and for whom you provided such other services in compliance with this Agreement prior to termination.
Source: Item 23 — RECEIPTS (FDD pages 74–246)
What This Means (2025 FDD)
According to the 2025 Eos Worldwide Franchise Disclosure Document, franchisees are generally prohibited from soliciting Eos Worldwide's clients to terminate their engagement with the company. Specifically, franchisees cannot directly or indirectly solicit, divert, or induce any of Eos Worldwide's or its affiliates' clients, referral sources, brokers, insurers, suppliers, or any other parties with whom Eos Worldwide (or its affiliates) does business or whom the franchisee knows Eos Worldwide has contacted for business relationships, to terminate their engagement with Eos Worldwide or its affiliates. They also cannot interfere with any business relationships or potential business relationships.
This restriction is in place to protect Eos Worldwide's existing client base and business relationships. It prevents franchisees from undermining the brand by poaching clients or disrupting established partnerships. This type of clause is common in franchising to maintain system-wide stability and goodwill.
However, there is a provision that allows franchisees to continue engaging with clients for services not related to EOS, provided that these services do not utilize Eos Worldwide's marks, copyrights, or other intellectual property, and that the franchisee was providing these services in compliance with the agreement prior to termination. This exception allows franchisees to maintain existing client relationships for unrelated services, offering some flexibility while still protecting Eos Worldwide's core business. Prospective franchisees should carefully consider these restrictions and ensure they understand the scope of permissible and prohibited activities to avoid potential breaches of the franchise agreement.